An assemblyman is calling for a legislative investigation into Gov. Gavin Newsom’s alleged practice of awarding his top campaign donors with no-bid contracts using his emergency powers, which were garnered as a result of the pandemic.
“Gov. Newsom has been claiming that the state of emergency allows him to sidestep some of the requirements that are usually involved in awarding state contracts,” said Assemblyman Kevin Kiley (R-Rocklin).
A CapRadio investigation found that Blue Shield of California, which contributed more than $300,000 to Newsom’s campaign since 2018, received a $15 million no-bid contract, Bloom Energy, which contributed nearly $100,000 since 2018, received a $2 million no-bid contract, and BYD, which contributed $40,000, received a no-bid contract totaling more than $1 billion.
“It shows that perhaps there were considerations other than the health and well being of Californians and the efficient use of taxpayer dollars that motivated these contracts and that there might have been some favoritism shown,” Kiley told the Southern California Record.
Kiley said he has appealed to the Assembly Speaker of the Legislature, Anthony Rendon, to launch an investigation but has yet to receive a response.
“Unfortunately, the leaders of the legislature have not been willing to provide meaningful oversight throughout this whole last year,” Kiley said. “Committee chairs can look into it as well. There's a number that might have purview over a matter like this whether it be the health committee or the accountability and oversight committee that fit into the scope of actions that I think need investigations.”
If Rendon or a committee chair launched an investigation, there would be access to the communications between Gov. Newsom, his staff, and the vendors who received no-bid contracts as well as the performance of the selected vendors in fulfilling their obligations since receiving the contracts and the terms negotiated between these vendors and the Newsom Administration, according to a press release.
“In awarding contracts, we're using taxpayer dollars and we need to have those contracts go to the best company that can provide the best service at the lowest price,” Kiley said. “When contracts are winding up going to the governor's top campaign donors, it raises questions as to why other companies didn't get a shot and whether they were really the best pick. Did they get the contract because they could do the best job or because they were connected to the governor?”